This Alert was originally emailed to all active subscribers at 10:45AM on 9 February 2018
New Allocation: 34% C Fund, 33% S Fund, 33% I fund
The market has fallen over 10% in the past week. When I reallocated to 50%C, 50% G on 29 January, I saved half of that loss and still had half at stake for the eventual rebound. That was a risk management decision. At this point, the market has become extremely over sold in the short term and needs to recover before possibly moving lower. See the chart below. The potential minimum upside is about 4.5% up to the 50DMA with the potential downside risk at 2.5% to the 200DMA. We will discuss this in detail in this week’s Sunday Update.